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9966 [12]
3 years ago
7

In its first month of operations, Windsor, Inc. made three purchases of merchandise in the following sequence: (1) 400 units at

$5, (2) 500 units at $7, and (3) 600 units at $8. Assuming there are 300 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Windsor, Inc. uses a periodic inventory system.
Business
1 answer:
mart [117]3 years ago
6 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Windsor, Inc. made three purchases of merchandise in the following sequence:

(1) 400 units at $5,

(2) 500 units at $7

(3) 600 units at $8.

Total units= 1,500

Assuming there are 300 units on hand at the end of the period, compute the cost of the ending inventory.

A) FIFO (first-in, first-out)

Inventory= 300*8= $2,400

B)LIFO (last-in, first-out)

Inventory= 300*5= $1,500

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3 years ago
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2 years ago
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To pay for investment advice from financial consultants Smith and Jones, Tony signs a check payable to "Smith or Jones." A prope
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Answer:

to Smith only, or Jones only, or Smith and Jones

Explanation:

In this specific scenario, a proper indorsement of the check would be to Smith only, or Jones only, or Smith and Jones. That is because a check needs to be as specific as possible and cannot have various options. The check needs to be made to a single specific individual and if it is for more than one individual then both need to be included as a requirement (and). Making it so that both recipients must cash the check together for it to be accepted.

6 0
3 years ago
It is argued that LIFO should not be allowed to compute net income because a. it does not match costs to revenues, especially wh
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Answer:

d. it causes profits to be understated when prices are rising and allows a company to dodge taxes.

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The LIFO method should not be permitted to determine the net income as in this case the profits would be understated at the time when price is increased due to this it permits the company to dodge taxes as the inventory consumed in the production process also the high inventory value would be involved in the cost of sales that represent the high cost, this result in lower profits and taxes

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